Energy4Impact_AnnualReview_2020_Web_Spreads

Powering

a fairer

recovery

Annual Review 2020

“Energy access saves

lives. Solutions are

available, and if we

do not seize them

during a time of crisis,

when will we?”

Damilola Ogunbiyi

CEO and UN Special Representative to the

Secretary-General for Sustainable Energy

for All

Table of

contents

01 The big picture...........................................................................02

02 Our attainments......................................................................06

03 Boosting livelihoods.............................................................10

04 Coping with climate change.......................................18

05 Empowering women...........................................................22

06 Serving the poor and vulnerable..........................26

Thank you....................................................................................................30

Our partners and donors..........................................................31

Financials......................................................................................................32

02 Energy 4 Impact Annual Review 2020

Powering a fairer recovery

Energy 4 Impact Annual Review 2020


03

01

The big

picture

The unprecedented health, economic, and social impact of the Covid-19

pandemic has put millions more people into extreme poverty, jeopardising

years of progress and exacerbating existing inequalities. These unfolding

setbacks have only reinforced the urgency of our mission in the face of

this current crisis and the economic recovery that must follow.

We can build back a fairer, more resilient recovery that helps the poorest nations to keep closing

the poverty gap, but ending energy poverty must be a pillar of this rebuild. To meet and overcome

these problems in the coming years, we have focussed our efforts on four key challenges:

Access to energy is not just an end in itself. It impacts every facet of

human endeavour, from healthcare, education, and entrepreneurship,

to agriculture, and so much more. Energy brings sweeping changes to

a community: children who go to school during the day can study at

night; families can keep food fresh and cook it, making less smoke in

their homes; health clinics can provide 24-hour care with functioning

equipment and refrigerated vaccines; farmers can grow more food;

businesses can be more productive; and shops can stay open longer

and get more trade. As all these benefits multiply, they improve life in

communities, from village to country to region.

Boosting livelihoods

Creating income opportunities

through increased access to, and

productive use of, energy.

Coping with climate

change

Mitigating the impact of climate

change on agriculture, using clean

energy technologies to make farms

more resilient and productive.

Empowering women

Supporting women’s role in

the economic growth of their

communities, and improving their

daily lives at home and work.

Serving the poor and

vulnerable

Making clean energy affordable for

the very poorest, who may otherwise

be left behind by growing energy

markets.

The big picture

The big picture





05

Our approach

We believe in private sector-led

development. That’s why we

help clean energy suppliers and

businesses in Africa to expand

energy access and use energy

to grow.

“Unless we make progress

on ensuring access to

sustainable energy, it will

be difficult to achieve an

equitable recovery from

this crisis.”

Dr Rajiv J. Shah,

President of the Rockefeller Foundation

What

we do

Energy access alone will not help businesses

to grow; they also need new skills, investment,

equipment and markets.

By helping them with these ancillary resources,

we ensure jobs are created and incomes

improved.

We help to build markets and develop enterprises.

We train and advise on business and technical

matters. We help raise capital. We implement projects

in a range of challenging frontline contexts:

Working with the poorest 20%

of households

Helping women entrepreneurs

in the last mile

Incubating clean energy startups

testing new technologies and

models

Advocating for policies that

promote gender and social equity

Helping smallholder farmers

Exploring ways to make

mini-grids more profitable

Working in refugee camps

Solarising rural schools and

clinics

Crowdfunding for energy access

companies

The big picture

The big picture

06 Energy 4 Impact Annual Review 2020 Powering a fairer recovery



07

02

Our

attainments

Since 2007 we have helped over 18.9 million people

in sub-Saharan Africa acquire better energy access.

And we’ve also helped 8,100 businesses – local micro-energy businesses,

small and medium enterprises, and project developers – access the

capital, skills and equipment to use energy, grow, and deliver energy

access.

15,400 13.4m

local jobs

created

within the businesses

we support.

tonnes of CO 2

emissions avoided

by adopting clean

energy technologies.

Unlocking investment for energy

access enterprises:

• Our crowdfunding initiatives have helped

raise over £20 million, giving over 1.2

million people improved access to energy.

• We have assisted 12 companies in raising

over $1.7 million for Covid-19 pandemic

support.

• Our technical support has directed over

$5 million of private investment to new minigrid

projects.

• We designed a multi-million dollar

first-loss debt facility to encourage

local institutional lending to energy access

companies.

• In Uganda, we are working on a large

investment incentive facility for mini-grid

projects.

• In Senegal, we are working with international

donors to ensure Covid-19 recovery funds

and grants are made available to businesses

in need to maintain their machinery, lower

credit, and cushion equipment retailers

against payment failures.

• In the last 10 years, companies we’ve helped

have raised over $160 million.

Our accomplishments

Our accomplishments


Powering a fairer recovery Energy 4 Impact Annual Review 2020

09

Where we work:

Country Offices

Project Experience

Cape Verde

Mauritiana

Mali

Niger

In the last year, we:

Extended energy access to an

additional 0.4 million people

Supported 55 mini-grids across

sub-Saharan Africa in demand

assessment, productive use of

energy, technical design, site

selection, regulatory advice, and

raising capital

Helped 1,468 smallholder

farmers access funding,

equipment (especially solar

irrigation), and markets

Made it possible for 1,692 of

Kenya’s very poorest households

to afford solar, thanks to a top-up

payment to government allowances

Senegal

The Gambia

Guinea-Bissau

Guinea

Sierra Leone

Liberia

Cote

d’Ivoire

Burkina Faso

Ghana

Benin

Togo

São Tomé and Príncipe

Nigeria

Cameroon

Chad

Rwanda

Burundi

DR Congo

Zambia

Ethiopia

Uganda

Kenya

Tanzania

Malawi

Mozambique

Somalia

Seychelles

Helped 1,251 businesses across

East and West Africa (587 of

them owned by women) to use

electricity to increase productivity

for:

• Welding

• Carpentry

• Shops and restaurants

• Refrigeration

Provided solar power to schools

and health clinics in poor and

remote areas of Kenya, serving

15,000 students and over 550

patients every week

Supported seven companies

providing solar home systems to

households in refugee camps in

Uganda, Kenya and Rwanda

Zimbabwe

Botswana

Eswatini

Lesotho

South Africa

Madagascar

Mauritius

Our accomplishments

Our accomplishments




11

03

We helped Tanzania’s Rural

Energy Agency in villages recently

connected to the grid, to help local

businesses to expand using the

newly available power.

183%

349 enterprises

increased their profits

by 183%.

523

523 jobs were

created.

Boosting

livelihoods

Supporting energy suppliers and the businesses

they serve to realise their potential.

Builders, Tanzania

Unreliable

electricity hampers

Africa’s economic

development, costing

as much as 2% of GDP.

Rural enterprises

are one fifth as

productive as urban

ones.

Independent, off-grid energy

creates jobs. For every one job

in an energy supply company,

five more jobs are created in

energy-consuming businesses.

As part of our strategy to create

jobs and stimulate rural, off-grid

economies in sub-Saharan Africa

under the Powering Renewable

Energy Opportunities (PREO)

programme, we support companies

that build and install off-grid

energy products, and that use

energy to drive productivity in

projects ranging from e-mobility

solutions, agribusiness, rural supply

chains, to affordable energy and

internet access for educational

institutes.

Beyond the initial supply of energy, equipment,

and training, we work with people in local

markets, systematically addressing problems in

farming, business, logistics, and investment, to

ensure progress in one area is not held back by

shortcomings in others. We help them decide

what they are going to sell and to whom; how

best can they transport their goods; what

additional equipment will be most helpful;

how to finance new equipment and projects;

and many other challenges they face in their

particular context.




Powering a fairer recovery Energy 4 Impact Annual Review 2020

13

1

1

We are supporting a range of

energy-for-livelihoods projects:

Energy access

1 Manufacturing affordable and efficient cookstoves

2 Electric boats for fishermen

3 Ice-making for island mini-grids

4 Agricultural mechanisation services

5 Shea nut processing for a women’s cooperative

Transport

2

1

1

6 Electric vehicles and battery rental for sustainable transportation

7 Electric motorcycle and battery recharging station

7

6

1

5

Business

8 Manufacturing off-grid agricultural equipment

9 Engineering and manufacturing of solar PV units

1 Internet connectivity for micro-enterprises

1 Off-grid solar refrigerators for fish traders

1

1

9

3

2

Agriculture

1 Off-grid milk pasteurisation and cooling

1 Solar water pumping and equipment for farmers

1 Solar-powered drip irrigation systems

1 Solar refrigeration for greenhouse-grown produce

1 Solar/hybrid-powered coffee bean roaster

1 On-demand pay-as-you-go cold storage for agricultural value chains

1

1

Logistics

1 Distribution of solar water pumps for agricultural value chains

8

4

1

1

Healthcare

1 Digital health information systems

Education

2 Pay-as-you-go solar systems to enable digital education







15

Customers in Kailahun, Sierra Leone

Mobile Power supplies affordable

energy to low-income households

through a Battery as a Service

model. The batteries are

charged centrally and then

rented to customers in off-grid

communities in Sierra Leone,

Uganda, Zambia, the Gambia,

and Liberia.

With daily battery rentals, Mobile Power

provides energy access at a flexible and

affordable cost, without customer debt or

long-term commitment. As they scale up

their business, our initial financial support

has been complemented with strategic and

business advice, enabling them to refine

and demonstrate their business model to

investors and partners.

“By expanding access

to clean energy across

nascent markets, we

can unlock massive

opportunities for

business and education

whilst improving health

and reducing carbon

output.”

Avocado farmers in Kenya

SokoFresh provides Cold

storage as a Service to

smallholder farmers

across Kenya, connecting

them to buyers and

maximizing the value of

their harvests.

Over the last year, they signed up

530 avocado farmers who traded

10,000 kg of avocados, increasing

their income by 58%.

Chris Longbottom

CEO, Mobile Power







17

We improve the

commercial viability of

rural power projects

by stimulating demand

amongst the businesses

they serve.

Streamlining

revenue collection

for mini-grid

developers

Nigeria

Havenhill Synergy operates two

mini-grids in Nigeria, rated 42kWp

and 21kWp respectively. Their

customers were making many small

electricity payments each month,

meaning high payment collection

costs for the supplier.

We advised Havenhill to shift to

an arrangement in which each

customer makes just a single

payment at the beginning of the

month.

We helped with:

• Design of new monthly block energy tariffs

for different customer categories

• Support in deploying the tariffs through

customer education, with leaflets, meetings,

and events at each village

• Monitoring of energy consumption and

payments

New monthly tariffs created a simplified,

predictable revenue schedule and reduced

Havenhill’s operational expenses significantly.

“The technical support

from Energy 4 Impact

has contributed

immensely to our

energy access projects

across Nigeria.”

Olusegun Odunaiya, Havenhill

In the last year,

we have advised

55 mini-grid

projects across

17 sub-Saharan

countries.

What we

learned

Energy improves a businesses

capacity to serve a market, but

livelihoods projects must reflect

all the needs of the market

and the businesses. These may

encompass new skills, equipment,

suppliers, finance, or routes to

market. Energy is just a small –

albeit important – piece of the

puzzle. Electrification benefits

the wider community more than

the power company – so it often

deserves public funding support.






19

04

Coping with

climate change

To prosper in a changing climate, African farmers

need better access to energy and the tools and

skills to use it.

We promote climate-smart agriculture and technologies – like solar

irrigation systems, cold storage, and crop processing equipment – which

improve yields, preserve fresh produce, and reduce carbon emissions.

With our agronomic, operational, and financial advice, plus support in

routes to markets, inputs, and supply chain management, we help farmers

make their businesses more effective and profitable.

Agriculture employs

65% of Africa’s

workforce and makes

up a third of its gross

domestic product

(GDP).

Only 4% of arable

land in sub-Saharan

Africa is irrigated,

leaving farming

vulnerable to drought.

Crop yields on

properly-irrigated

land can be more

than double those

on rain-fed and

hand-irrigated land.

According to the

Food and Agriculture

Organization, in sub-

Saharan Africa, up

to 50% of produce

perishes before

reaching customers.

In Rwanda, we helped

nearly 1,500 smallholder

farmers buy solar

irrigation systems and grow

cash crops, which increased

yields by up to

70%

In Senegal, we helped a

women’s cooperative

acquire cold rooms to

preserve fish and vegetables,

reducing losses and

increasing market access.

Their monthly sales grew by

75%

Coping with climate change






21

Farmer in Rwanda

Solar irrigation and

new skills for cash

crop farming

Rwanda

Twisungane is a small cooperative of eight

farmers operating in the Eastern Province of

Rwanda. Traditionally they could only practice

subsistence farming, due to the prevailing dry

spells and long dry season, which make it hard

to grow cash crops without proper irrigation.

In late 2018, Twisungane joined the group

of small-scale farmers being helped by

Energy 4 Impact to acquire quality solar

irrigation systems through partnership with

the government, financial institutions and

equipment suppliers. The cooperative financed

the $1,900 cost of the irrigation system with

the combination of a bank loan, and a grant

subsidy provided by the project.

In one year:

• Twisungane’s profit went from $460 in 2018,

to $1,700 in 2019 after purchasing the

irrigation system.

• They paid the bank loan off in April 2020 and

have expanded their farmland from 0.4 to 1.5

hectares, with high expectations for the 2020

harvest.

“Energy 4 Impact did a great

job helping farmers get solar

irrigation systems and know-how in

agricultural practices, pest control

and new crops. This will have a

long-lasting benefit on productivity,

enabling farmers to increase

the number of planting seasons

and diversify their produce. This

technology contributed to irrigation

in the dry period, allowing farmers

access to water. The district’s

leadership appreciates this support

provided by Energy 4 Impact”

Rusilibana Jean Marie Vianney, Vice Mayor

in Charge of Economic Development, Ruhango

District, Rwanda

What we

learned

Solar irrigation can boost

farmers’ yields and help them

cope with erratic rains, but the

multiple supply chains – for crops,

equipment, and finance – all need

to function well for the solar

irrigation market to develop. This

takes a system-wide approach,

equipping everyone – not just the

farmers – with the necessary skills,

knowledge and resources.






23

05

Empowering

women

Energy offers life-changing opportunities for women,

through selling energy products and services and

working in electricity-powered enterprises.

In sub-Saharan Africa:

74% of women work

in informal, often

unpaid employment,

performing hard

manual labour.

Girls spend up to 18

hours a week gathering

fuel for household

cooking and 5 hours per

week collecting water.

Women are 50% of the

agricultural workforce

but control only 20% of

the land.

Young women are over

1.5 times less likely to

be formally employed or

undergoing education or

training than young men.

In 2020, 47% of the enterprises we

supported were led by women.

In Benin, we helped 25 women

entrepreneurs upgrade their businesses

through better energy efficiency and

improved management skills. Their

businesses – ranging from pineapple juicing,

chicken rearing, fish chilling and wholesaling,

to palm oil pressing – have in the last year

grown their net profits by 66% and

created 130 jobs in their communities.

66%

823

JOBS

In Senegal, we helped 200 agricultural

cooperatives with 11,000 female

members get finance for solar freezers,

pumps, dryers, water purification systems

and lighting.

• This has increased profits by 100% and

created 823 jobs.

Empowering women

Empowering women





25

Egg farmer in Benin

From diesel and

elbow-grease to

solar-powered

profits

Benin

When Energy 4 Impact met Emma, she had a

flock of 2000 egg-laying hens and used a diesel

engine to crush corn, soya, and other cereals

to make the 600kg of feed per day needed,

which she would then mix by hand.

We helped her acquire an electric mixer and

grinder linked to the power grid, which now

enables her to produce up to 2,000 kg of feed

per day. With our business support, she scaled

up, and in one year increased her flock from

2,000 to 4,000 hens, and created a second

farm. As a result, her annual revenue grew

from $7,100 to $13,700 and her casual day

employee – also a woman – was hired full-time.

Emma later had the opportunity to pass on

her knowledge by coaching five young women

as part of a local women’s entrepreneurship

support programme.

“Notwithstanding the

terrible headwinds

that the pandemic has

created for our sector and

many others, we have

managed to carry on

supporting businesses in

the most deprived areas in

marginalised and displaced

situations, ensuring

women are empowered to

become active participants

in the economic recovery,

making a difference for

millions of people.”

Anthony Marsh

Chairman, Energy 4 Impact

Key insights

Women benefit disproportionately

from energy access and should have

a major role in their communities’

development. That said, we must

adapt to entrenched cultural and

business norms, and use success

stories that build the economic

case for women’s empowerment to

challenge those norms from within.

Empowering women

Empowering women




27

06

Serving the

poor and

vulnerable

Using pro-poor strategies to reduce inequality

and help people escape poverty.

In sub-Saharan Africa:

More than 368 million

people live on less than

$1.90 a day. The economic

crisis caused by the

pandemic will increase this

number by 13 million.

Over 90 million children

attend schools without

electricity.

Almost 60% of health

facilities have no

power for life-saving

equipment.

There are more than

18 million displaced people,

26% of the world’s refugee

population.

We address the energy needs of the

poorest, by making clean energy available

and affordable.

In Kenya:

We are providing solar systems

to 300 schools and health clinics

in five of its poorest counties.

More than 86,000 students and

over 19,000 patients per week

are benefitting from lighting,

computers, learning tools and

life-saving equipment provided by

better energy access.

We helped top up government

subsidy payments to 1,600 of the

poorest households, enabling

8,000 people to access solar

energy.

In Kigoma, Tanzania:

In a region hosting a major

population of refugees from

Congo and Burundi, we helped 82

women entrepreneurs increase

their productivity and income,

create jobs, and improve living

standards and food security.

Serving the poor and vulnerable






29

Patients and staff of Nanam Health centre in Turkana, Kenya

Enabling local

partnerships that

uplift displaced

communities

Uganda and Rwanda

In Uganda, we have incentivised solar

providers to better serve refugee communities

by allowing payment for solar equipment and

energy consumption in small instalments,

rather than complete up-front investments.

These providers have since sold more than

4,100 solar systems in 16 months, helping to

create more than 200 local jobs.

Amita, a South Sudanese refugee, was

spending 27 cents per day on kerosene and 13

cents per mobile phone charge. Her new solar

system costs just 24 cents per day for lighting

and charging.

In Rwanda, we are working with government,

NGOs, and private sector partners, to meet the

energy needs of refugee-owned businesses,

and enable them to access skills, markets,

capital, and equipment. These businesses

include hairdressers, beauticians, butchers,

cyber cafés, phone repair shops, and

refrigeration services for fresh food.

With our support, Mahoro and her husband,

both refugees in Gihembe settlement camp,

can now produce quality maize flour in a

shorter time, at less cost; helping their income

grow 220%, from $68 to $218 per month.

Inadequate energy limits the

poorest people’s access to

education, employment, and

healthcare, trapping them in

poverty. Energy access can help

them overcome this, but it needs to

be affordable.

What we

learned

There is a compelling case for

subsidising the poor’s initial

purchases in energy access

markets, but how will they manage

the systems, and pay for parts

and replacements in the long

term? We are experimenting with

various mechanisms to address

this challenge and create more

sustainable solutions.







31

Our partners and donors

Thank you

Access to energy, and the empowerment it brings, changes

everything. This truth resonates ever more powerfully as

African countries wrestle with the privations of the current

Covid-19 pandemic, and look for ways to rebuild their embattled

economies. The ongoing transformative impact of our work

would be impossible without the brilliant private sector

businesses that we work with, and the generous support of our

partners and donors. To all those we work with and who support

us, thank you. You are changing lives.

There is still much to do. Together, we can deliver not just

expanded energy access, but also the equipment and know-how

to use it to help farming communities, women, businesses, and

the most deprived and vulnerable.

Norwegian Embassy

Dar es Salaam

Get involved

If you are a practitioner, investor or business involved in energy

access and you’re interested in collaborating with us, please

contact us on info@energy4impact.org.

To support our work visit

https://www.energy4impact.org/donate

Thank you

Our partners and donors



Financials

An unconnected village on Banda Island,

Lake Victoria, Uganda, and typical of the sites

that would benefit from the mini-grid schemes

we work on.

Income

£4.8 million

Expenditure

Total expenditure was £4.5 million. Of this 90% is

spent on direct project costs.

Consultancy

Direct project costs

£4.8

million

Grants

Others

£4.5

million

Other support costs

Fundraising

Income from:

2020 2020 2020 2019

Unrestricted Restricted Total Total

£ £ £ £

Donations and legacies 15 368 - 15 368 20 981

Charitable activities - grants - 3 623 078 3 623 078 5 433 830

Charitable activities - consultancy 1 199 569 - 1 199 569 1 564 444

Investments 526 - 526 238

Other income 8 087 - 8 087 5 917

Total income 1 223 550 3 623 078 4 846 628 7 025 410

Expenditure on:

Raising funds 60 410 - 60 410 120 455

Charitable activities 919 007 3 568 734 4 487 741 6 721 309

Total expenditure 979 417 3 568 734 4 548 151 6 841 764

Net income / (expenditure) 244 133 54 344 298 477 183 646

Transfers between funds (11 993) 11 993 - -

Net movement in funds 232 140 66 337 298 477 183 646

Reconciliation of funds:

Total funds balances brought forward 449 649 1 253 767 1 703 416 1 519 770

Funds at the start of the year

Total fund balances carried forward 681 789 1 320 104 2 001 893 1 703 416

Financials

Energy 4 Impact is a non-profit organisation working

with local businesses to extend access to energy in

Africa. Our work growing sustainable clean energy

markets is creating jobs, accelerating economic growth

and improving the quality of life for millions of people.

Visit our website: www.energy4impact.org

Mail us: info@energy4impact.org

@Energy4Impact

@Energy4Impact

Energy4Impact_AnnualReview_2020_Web_Spreads

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